Success for couple affected by illegal Spanish CGT loophole

Britons who were overcharged in capital gains tax (CGT) after selling their Spanish property could be entitled to reclaim more than £8 million.

A British couple have become the first claimants to successfully battle the Spanish government for their tax overpayment, with international money transfer firm HiFX stating that the 600 people claiming their tax back could be entitled to a collective £8.4 million.

Mark Bodega, director of currency specialists at foreign currency exchange provider HiFX, said: "It is fantastic news that the first British couple has been successful and that a total of 600 other British claimants are now in the process of putting their cases forward."

However, he went on to urge anyone who thinks they have been affected by the tax trap to come forward, as the amount that stands to potentially be reclaimed could be as much as £140 million.

Last year, the firm launched an offshoot website spanishtaxreclaim.co.uk to help those affected by the tax overcharging to claim their money back under a no win, no fee arrangement.